1 Identify the correct components of the income statement.
revenues, losses, expenses, and gains
assets, liabilities,...
1 Identify the correct components of the income statement.
revenues, losses, expenses, and gains
assets, liabilities, and owner’s equity
revenues, expenses, investments by owners, distributions to
owners
assets, liabilities, and dividends
2. The balance sheet lists which of the following?
assets, liabilities, and owners’ equity
revenues, expenses, gains, and losses
assets, liabilities, and investments by owners
revenues, expenses, gains, and distributions to owners
3. The accounting equation is expressed as
________.
Assets + Liabilities = Owner’s Equity
Assets – Noncurrent Assets...
The company is comparing two different processes. It currently
follows Process 1, with revenues of TL...
The company is comparing two different processes. It currently
follows Process 1, with revenues of TL 80,000 per year, maintenance
expenses of TL 5,000 per year, and operating expenses of TL 38,000
per year. Process 2 provides revenues of TL 80,000 per year,
maintenance expenses of TL 12,000 per year, and operating expenses
of TL 32,000 per year. Process 1 employs a piece of equipment that
was upgraded 2 years ago at a cost of TL 22,000. If Process 2...
1. Which of the following statements about revenues and expenses
is correct?
If revenues are greater...
1. Which of the following statements about revenues and expenses
is correct?
If revenues are greater than expenses, the company has net
income and Retained Earnings decreases.
If revenues are less than expenses, the company has a net loss
and Retained Earnings decreases.
If revenues are less than expenses, the company has a net loss
and Common Stock increases to balance off the loss.
If revenues are greater than expenses, the company has net
income and Common Stock increases.
2....
In Year One, a company has revenues of $500,000 and expenses of
$300,000. Of the expenses,...
In Year One, a company has revenues of $500,000 and expenses of
$300,000. Of the expenses, $50,000 represents a warranty on a
company product. However, the company only paid $10,000 as a result
of this warranty. The remainder is expected to be paid in a future
year in which company officials believe there is a 46 percent
chance that the company will have taxable income to be reduced by
this warranty cost. The enacted tax rate is 30 percent for...
XYZ Company, a 'for-profit' business, had revenues of $12
million in 2016. Expenses other than depreciation...
XYZ Company, a 'for-profit' business, had revenues of $12
million in 2016. Expenses other than depreciation totaled 75
percent of revenues, and depreciation expense was $1.5 million. XYZ
Company, must pay taxes at a rate of 40 percent of pretax
(operating) income. All revenues were collected in cash during the
year, and all expenses other than depreciation were paid in
cash.
What was XYZ's total cash flow?
Pendleton Company, a merchandising company, is developing its
master budget for 2015. The income statement for...
Pendleton Company, a merchandising company, is developing its
master budget for 2015. The income statement for 2014 is as
follows:
Pendleton Company
Income Statement
For Year Ending December 31, 2014
Gross sales
$1,500,000
Less: Estimated uncollectible
accounts
(30,000)
Net sales
1,470,000
Cost of goods sold
(825,000)
Gross profit
645,000
Operating expenses (including
$25,000 depreciation)
(375,000)
Net income
$270,000
The following are management’s goals and forecasts for 2015:
1.
Selling prices will increase by 6
percent, and sales volume will increase...